Global Automotive Electronic Stability Control System Market - Analysis of Growth, Trends, and Forecast (2018 - 2023)
Every year, close to 50 million people are injured in accidents globally, and about 3,300 people die every day from road crashes. 9/10ths of the total casualties occur in the middle and low-income countries that have less than half of the world’s total vehicles. This is majorly because of lack of safety systems in the automobiles sold in those regions. But the use of systems such as ESC is now growing in the emerging markets which has led the market to register a healthy CAGR of 9.57% during the forecast period.
Rising safety concerns to fuel growth
Electronic stability control detects loss of traction and automatically applies brakes to improve vehicle’s stability. Africa is a huge potential market; however, it will take a little time for the electronic stability control systems to become standard in the automobiles sold. The sales of automobiles are currently very low but are expected to grow exponentially, especially in markets like Ghana and Nigeria that are experiencing a rise in the disposable incomes. But the highest growth in the forecast period is expected to be shown by the Asia-Pacific region, where there has been rising safety concerns and more stringent regulations. India is forecasted to show the highest rate of growth in the region. A majority of the entry level hatchbacks sold in India recently scored a 0 in the Euro NCAP (New Car Assessment Program) safety ratings and this created awareness about the poor level of safety standards. Since then, some safety features have started coming as standard in all models. The National Highway Truck Safety Administration finalized a rule in 2015 that makes it mandatory for commercial motor vehicles to include electronic stability control systems. This legislation will have a positive effect on the electronic stability control systems market.
Slow economic growth in Latin America to hinder market
ESC Systems come as standard in most of the luxury car models. The sales of luxury cars are rising rapidly in the Asia-Pacific region, which will boost the electronic stability control systems market. Latin America is anticipated to be the slowest growing market due to the sluggish growth in the passenger and commercial vehicle sales as a result of the poor economic growth scenario. Overall, the market is predicted to grow the fastest in the passenger vehicle segment in the region. The growth in the market will be a result of the tightening legislation all over the world that will make it mandatory to have such systems in the passenger and commercial vehicles.
The market has been segmented by vehicle type (passenger vehicles, commercial vehicles) and geography (North America, South America, Europe, Middle East & Africa and Asia-Pacific).
Key developments in the Market:
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